FIFO COSTING METHOD

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Posted on by algeloca

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Dear All,

Can someone answer if an item having a FIFO costing method will always suggest a the first Unit Cost at the sales entry regardless if I have succeeding purchases with different unit costs and it will just adjust the correct cost based on FIFO concept once Adjust Cost-Item Entries batch job is run?

YES OR NO?

Thanks.

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Community Member on at

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NO.

You need to run the Adjust Cost Item Entries batch job on daily basis. Once you run this batch job, system will update the Unit Cost at the Item Card and accordingly will update the latest updated unit cost at the sales entries.

However, please note that, if you are using LS retail, you need to run the JOB to replicate the latest Unit Cost to your stores, to have updated Unit Cost in store database as well.

Hope this helps.

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algeloca 160 on at

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"Once you run this batch job, system will update the Unit Cost at the Item Card and accordingly will update the latest updated unit cost at the sales entries."

- The update pertains to the value entries or sales invoice document?

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mmv 11,471 on at

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Hi,

No, not in the Sales Invoice Document.

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Hi Mahesh,

Good point.

Why NAV don´t update the G/L entries in the sales documents, are the G/L entries of the sale correctly posted?

Is this because is designed as is or is there any other reason.

Thank you and best regards!

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Alexander Ermakov 28,096 on at

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Actually, the job that adjusts the cost of items updates both purchasing entries and sales entries if the item already has been sold. That is, the G/L entries of cost of goods sold, made when you have posted the sales invoice, will be also adjusted. Related Value Entries are also updated.

However in the posted sales invoice there is mainly information about sales price, but not the cost, thus it is nothing to adjust.

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HI Alexander,

Understood and I already check this.

Thanks for your response.

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Indikauk 1,759 on at

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Hi Angelito

Hope below link will help you to understand the FIFO and other Costing Methods how they are calculate on NAV

Design Details: Costing Methods https://msdn.microsoft.com/en-us/library/hh997373(v=nav.90).aspx

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i guess yes,

because the operation of Adjuste Cost-Item Entries begin from the last Adjuste date.

for more information use this link :

bousaid-comptabilite.blogspot.com/.../adjust-cost-item-entries-batch-job.html

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